Indonesian consumers upbeat about economy in March

Indonesian consumers were optimistic on their economic prospect in March, according to an index released on Tuesday by the country's central bank.

The central bank consumer confidence index reached 109.8 in the month, which is still on optimistic level, the lender said in a statement.

That compares with 110.0 in the previous month.

Reading above 100 indicates the consumers are optimistic on the economy.

The Indonesian GDP growth accelerated at faster pace in the final quarter, 5.04 percent, compared with 4.74 percent in the previous three months, according to the national statistic bureau.

The expansion is expected to persist as the bank forecast 5.1 percent growth rate in the first quarter, according to Agus Martowardojo, governor of the bank.

The lender has cut its benchmark interest rate by 75 basis points since January as inflation has been in check and it joins government's effort to prop up growth.

The central bank estimates the economy to grow 5.2 to 5.6 percent this year compared with 4.79 percent last year.

It expects inflation at the range of 3 to 5 percent in 2016 after accelerating 3.3 percent in 2015.

Last month, the government cut subsidized-fuel prices, which is expected to help strengthen purchasing power in the Southeast Asia's largest economy.

Consumption, along with investment and export, is the most contributive to the growth in Indonesia, which is home to over 250 million populations.